It may not be an easy decision to come to; however, bankruptcies are often necessary. It is always best to go forward, armed with the best information and assistance you can find. You need to know what you are up against. Ahead, you will find information from others like yourself, who have struggled with bankruptcy and its effects.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. When you are faced with this issue, begin to familiarize yourself with your state’s laws. The laws governing bankruptcy vary from state to state. For instance, your home might be protected in some states while you might lose it in others. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Don’t touch retirement accounts unless you don’t have a choice. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.
Never give up. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. A qualified bankruptcy attorney can walk you through the petition process.
Initial Consultation
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. You can take as much time as you need to meet with different lawyers.
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. If Chapter 7 is what you file, your debts will get eliminated entirely. This type of bankruptcy ends any relationship you might have with creditors. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. Look into both types of bankruptcy before deciding which one would suit your particular needs.
You could see about filing for Chapter 13 personal bankruptcy. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Remember that missing a payment to the plan will result in your case being dismissed.
Take some time after filing for bankruptcy to enjoy life. It’s not uncommon to be overwhelmed by the filing process. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. Your life will see improvement after you get past the bankruptcy.
If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. It is possible to get your car payment lowered if you file using Chapter 7. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. However, the process of approval is a bit more stringent. Your trustee must approve any new loans such as this. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. You will always have to let them know why this item needs to be purchased.
Make sure you act at an appropriate time. Timing is very important when it comes to personal bankruptcy filings. There are occasions where it pays to delay and others where a quick decision is the best option. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
No one ever wants to declare bankruptcy, but sometimes, it is just unavoidable. The article you just read should have given you some insight and inspiration on how to proceed with your bankruptcy case. Taking time to learn from those who have traveled this road before you will make your own journey less stressful.
This is a limited-time offer. We are not able to guarantee availability if you wait!
